1 Stock-Split AI Stock to Buy Before It Soars 328%, According to a Wall Street Analyst

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Sandisk (NASDAQ:SNDK) has been one of the biggest beneficiaries of the memory chip supply shortage, both in terms of revenue growth and share price appreciation. The stock has more than tripled this year, following its 559% gain last year.

Yet, most Wall Street analysts think Sandisk is undervalued. The median target price of $2,100 per share implies about 150% upside from its current share price of $885. Ben Reitzes at Melius Research is particularly bullish. His target price of $3,600 per share implies 328% upside.

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Further strengthening the bull case, Sandisk recently announced an 8-for-1 stock split that will take effect on Nov. 19. Splits are arguably indirect indicators of quality businesses because they are only necessary after substantial and sustained price appreciation, which itself rarely happens to bad businesses.

According to research from Bank of America, stock splits tend to precede robust, market-beating returns. From 1980 to 2023, stocks increased by an average of 25.4% during the 12-month period following stock split announcements. Meanwhile, the S&P 500 returned an average of just 11.9% over the same intervals.

What does that imply? Sandisk traded at $1,330 per share when the company announced the 8-for-1 stock split on Oct. 29. So, its share price will increase 25.4% to $1,667 over the next year if its performance matches the historical average. That implies about 98% upside from its current share price of $885.

Interestingly, that figure is actually below Wall Street's median target price of $2,100, which represents a consensus estimate from 34 analysts and implies 150% upside.

Sandisk is a semiconductor company that develops storage devices based on NAND flash memory.

Sandisk has been a major…

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